Bitcoin Price Ping Pong Within Tighter Range Hinting at $8.5K Next

May 23, 20200

The price of Bitcoin (BTC), the top-ranked cryptocurrency by market capitalization, has seen a spike towards $10,500 before the halving took place on May 11. However, the price of Bitcoin has been having problems since the halving and is currently showing more signs of weakness.

On the other hand, altcoins have been starting to show signs of life with the BTC market dominance index sliding from 67% to 65% after the halving. Is the momentum now shifting towards altcoins from Bitcoin as the most anticipated event is behind us?

Bitcoin price is hovering inside a wide range as volatility drops

The price of Bitcoin is stuck inside a wide range as the next chart shows. The resistance area in the red zone between $9,800 and $10,100. At the same time, the price is finding support in the $8,250-8,500 area.

Additionally, BTC is moving above the 100-day and 200-day moving averages (MA), a bullish sign for the markets.

The previous halving shows a similar structure. The price of Bitcoin moved significantly in the run-up to the event, then a pre-halving crash occurred and a new range was established. Throughout the month, the price of Bitcoin consolidated inside a range.

Afterward, one more drop occurred and the market continued its upward momentum while holding the 200-MA as support until the peak in December 2017.

Thus, not only will $220-225 billion level holding as support be a strong signal for further upwards momentum, but it would also make the March 12 crash one big shakeout for the entire cryptocurrency market.

Finally, the volume indicator is showing an increase in volume. This is another strong signal as this would suggest more accumulation.

Altcoin market capitalization still lagging behind

The total altcoin market capitalization chart shows a strong support/resistance flip of $70 billion, a level that’s also confluent with the 100-day and 200-day MAs as support. This is important as the market cap didn’t lose these MAs during the previous crypto bull market cycle.

However, as Bitcoin had significant support in 2018 at the $6,000 level, the total market capitalization had done the same with $220-225 billion. But now, the total market cap is again holding the $220-225 billion level as support while the price of Bitcoin is now 50% higher.

The altcoins by themselves are also lagging heavily as $113 billion is the 2018 support level comparable with the $6,000 level for Bitcoin.

The chart above shows that altcoins have been lagging in general. Is that a bad thing? No, Bitcoin is a first mover and also peaked first in December 2017, after which the altcoins followed.

Right now, Bitcoin had its first run pre-halving towards $10,200. But the volume is now also increasing for altcoins. This means that demand and interest are increasing potentially setting the stage for altcoins to finally catch up.

The bearish scenario for Bitcoin

However, once the price of Bitcoin isn’t able to break through the $9,300 barrier, retests of the lows should be expected. Levels to test would be $8,800 (already tested once already), but, more importantly, $8,200-8,500 support of the current range.

Nevertheless, this would still not be catastrophic for Bitcoin in general. The structure would still remain in an upward trajectory since March 12. The price has been making higher highs and higher lows since then, which is by definition a strong upward trend. Consolidation is, in fact, healthy for the market if new highs are to be established.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.